OFT to reveal its decision on bank overdraft fees next week

Consumers hope bank charges fight will continue

By Elliot Wright, 18th December 2009

The Office of Fair Trading's (OFT) response to the banks' Supreme Court victory in the overdraft fees case is expected to be revealed next Tuesday.

The announcement will be vital for millions of bank customers who are hoping that the OFT will continue its fight against the banks and help them reclaim billions of pounds worth of overdraft fees.

Although the OFT has yet to confirm the date of the announcement itself, the Exchequer Secretary to the Treasury Sarah McCarthy-Fry said earlier this week in Parliament that it intends to reveal its decision on 22 December.

In response to a House of Commons question from a Lib Dem MP who was calling for "fairness in the contractual relationship between banks and customers" McCarthy-Fry said: "The Office of Fair Trading is still considering the judgment in detail, and on 22 December, it intends to make an announcement about what further action will be taken.

The announcement will be vital for millions of bank customers who are hoping that the OFT will continue its fight against the banks and help them reclaim billions of pounds worth of overdraft fees.

"[The Government's] position is very clear: we want to see a fairer and more transparent system of charges, and we are working very closely with the OFT to achieve that."

The OFT lost their case against the banks in the Supreme Court last month after the court ruled that fairness rules do not apply to bank charges.

However, the court told the OFT that there may be other legal avenues through which they could challenge overdraft fees should they wish to continue this long-running legal battle.